How to be an ethical investor

Some say that you can be an ethical investor or a sucessful investor, but not both. However, the facts would suggest otherwise. Here's where to start if you want to be a successful ethical investor.

It's a common jibe that you can be an ethical investor or a successful investor, but not both. The facts show otherwise. But there is no denying that ethical investment does restrict the choices you can make. It may prevent you from investing in booming sector, and it may make your returns more volatile.

There is no common agreement on what precisely constitutes ethical investing. For some it is simply avoiding investing in shares that are obviously pernicious: drink, tobacco, gambling, and armaments are the most commonly cited. Others adopt more exacting so- called deep green' criteria. Investors like this only invest in companies that can be said to provide positive benefits for humanity: food; water; heat and light; shelter; medical care; education and so on.

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